lehman and goldman sachs borrow from the fed

So Lehman Brothers (LEH) and Goldman Sachs (GS) announced great earnings this morning that helped drive the market to the moon today. Then had to borrow money from the Fed discount window after hours. WTF kind of game is being played? The few long positions I still hold will be sold into this “rally”.

[LEH 46.49 14.74 (+46.43%) ], which reported better-than-expected earnings on Tuesday but has faced persistent rumors of a Bear Stearns-type liquidity crisis, plans to borrow from the Fed through the discount window.

Lehman followed up on Callan's announcement by borrowing from the window within minutes of her appearance. At 5 p.m. New York time, Lehman borrowed $2 billion, sources said.

Goldman Sachs Goldman Sachs Group IncGS
175.59 24.57 +16.27% NYSE also used the discount window late Tuesday, sources said, but it wasn't clear how much money the investment bank asked for.

Here is the discussion on the subject. A hard link to the CNBC announcement is about half way down.